Finances

GOVERNMENT APPROVES BILL ON NON-BANK CREDIT ORGANIZATIONS

12 octomber, 2017

The new draft law on nonbank credit organizations, approved by the Government on Wednesday, is aimed at preventing excessive risks in the sector of nonbank crediting and financial leasing.

The document also implies extension of access to finances of physical and legal persons, protecting rights and interests of creditors, donors, clients, as well as founders of nonbank credit organizations.

According to the Government’s press service, the new law regulates the registration and the functioning of credit organizations, including types of their basic activities. It implies the order of issuing preliminary permit before registration in the State Register of Legal Entities and the following registration in the Registry of Nonbank Credit Organizations, allowed by the National Commission for Financial Market (NCFM).

The draft of the new law contains requirements to administrators of nonbank institutions. The Law will oblige them to conduct audit of financial situation in credit organizations with assets of 25 million lei and higher. The document establishes minimal requirements to the authorized capital and equity capital. Nonbank credit organizations and leasing companies are obliged to support and keep the capital at the minimal level of 5% of assets.

Infotag’s dossier: There are over 130 nonbank credit organizations in Moldova, whose total assets exceed 4.7 billion lei. According to the NCFM, this segment of Moldovan capital market demonstrates annual growth of 20-25%. The activity of nonbank credit organizations is not regulated. The only thing they are obliged to do is to present report on their activity to the NCFM.

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